Good Afternoon,

We just consolidated a subsidiary bank into our bank. They were very small and had only two non-listed entities on their CTR exemption list with maybe four government entities exempted as well.
During a review we just discovered that they mistakenly had an electric cooperative listed as being exempt from CTRs as a government entity. The coop should be exempt as a non-listed business.

Do we have to go back and back file CTRs on this entity since they were not properly exempt?

NOTE: we are now exempting them properly as a non-listed entity at this time.

Thanks!

Only FinCEN can answer your question. Call the helpline.

As for looking backward, rlcarey is correct. Call FinCEN to see what, if anything, needs to be done about CTRs not filed in the past. Before you call, research the possibility that the customer would have qualified under Phase II for the entire time it was listed as Phase I. That would be a pretty compelling argument that there is no need to backfile. Either way, document your conversation.

As for looking forward, file a new DOEP on behalf of your bank with the correct reason for exemption ASAP. It would be pointless to amend the other bank's prior filing - unless, of course, FinCEN says you should. Then, it would be perfectly logical!

Thanks!